In the real estate sector, you have two options. You can, for instance, buy new or find value in an existing property. Pre-owned homes fall into this second category. These are properties with high capital gains that have proven their location, surroundings, and functionality. They still have much to offer.
These Miami options often hide interesting negotiations. Likewise, they have revaluation potential that is not always on buyers’ radar. In fact, people tend to underestimate them compared to new properties. However, by looking beyond the obvious, you can turn them into a smart investment opportunity.
Differences between new home and a pre-owned home in Miami
One of the first questions that arises when evaluating investment options is what is better. Is it a new or an existing property? In this regard, both proposals have important differences (Martínez, 2025):
- Initial price. Pre-owned homes usually have a lower value than new ones. Therefore, their market entry is more accessible.
- Immediate delivery. Unlike pre-construction projects, the pre-owned property is ready for living or renting.
- Customization potential. Many investors, similarly, undertake renovations to boost its value and tailor it to their lifestyle.
- Negotiation capacity. In the market, you can also more commonly find discounts on the final price.
It’s important to note that this doesn’t mean one is better than the other. Instead, it depends on the investor’s goal.
How to invest in a pre-owned home from Latin America?
For businesspeople from countries like Colombia, Mexico, Chile, Ecuador, or Peru, acquiring a pre-owned home in Miami is easier than it looks. The transaction includes (GBM Academy, 2025):
- Defining your budget and area of interest.
- Using expert advice to search for properties with value appreciation potential.
- Checking the property’s legal aspect. It must also have a clean history of taxes and debts.
- Signing the contract remotely, with support from notaries and secure digital platforms.
- Closing the transaction. This can be done without needing to travel to Miami.
Our professional PFS Realty team also supports this remote process. We then provide a reliable and transparent experience for our international clients.
Taxes a foreigner pays when buying a property
An aspect to consider before making this kind of acquisition is taxes. The most relevant ones include (Internal Revenue Service [IRS], 2024; Tax Foundation, n.d.):
- Property tax: applied to the property’s value. It varies by state, in fact, between 0.5 % and 2 %.
- Documentary stamp tax: this applies at the time of the property transfer.
- FIRPTA: a federal withholding that applies to foreigners at the time of sale, not purchase.
- Closing costs: these include legal fees, insurance, and registrations.
Best areas to buy pre-owned homes in Miami
Certain places, therefore, offer a wide variety of opportunities for rent or personal use. Among the areas with the most appreciation potential, meanwhile, and different alternatives of a pre-owned home, these stand out:
- Brickell. The financial district is ideal for corporate rentals and has high capital gains.
- Downtown Miami. Now in complete transformation, it combines housing, offices, and entertainment.
- Sunny Isles Beach. This is known for its oceanfront towers, making it attractive to international investors.
- Coral Gables. Traditional and exclusive, it also has excellent price stability.
The role of a pre-owned home in community building
In addition to the financial benefits, this type of real estate also helps to strengthen stable and diverse communities. Being situated in already developed neighborhoods, meanwhile, properties have established infrastructure. They also offer the possibility of integrating into neighborhoods with their own identity. Here, residents of different generations and nationalities coexist.
Unlike many new construction projects, which require years to create social dynamics, pre-owned homes provide an immediate sense of belonging. As a matter of fact, buyers find schools, community centers, local shops, and support networks that improve the living experience.
On the other hand, these properties enable families to access areas rich in history or architectural tradition. For international investors, this feature adds value. They can, for example, purchase a property that increases in profitability and connects with the city’s everyday life.
Legal requirements to buy pre-owned homes as a foreigner
The legal framework in Florida allows foreigners to acquire properties without restrictions. Now then, interested investors must, for this reason, meet certain requirements (USA Gov, n.d.):
- Have a valid passport.
- Maintain a U.S. bank account for payments.
- Ensure the property’s title is free of liens.
- Sign the closing documents in front of a title company or authorized lawyer.
Financing for foreigners
Miami banks then offer international investors access to competitive mortgages and diverse credit sources. The most common conditions are:
- Financing up to 70 % of the property’s value.
- Interest rates adjusted according to the financial profile.
- Terms between 15 and 30 years.
- Possibility of using the property for rent to help cover the loan.
This scheme allows buying a pre-owned home without committing all the investor’s liquidity. In the same way, you can also take advantage of dollar-based appreciation simultaneously.
Strategies to use pre-owned homes as an investment
There are, furthermore, various methods for each investor profile. All benefit from the Miami market’s constant appreciation. acquiring pre-owned homes opens the door to different profitability models:
- Traditional rental: long-term contracts with stable income.
- Vacation rental: ideal for tourist areas with high occupancy.
- Buy and renovate: raise the property’s value to sell it for a higher price.
- Hybrid models: combine temporary rental with personal use.
- Alternatives like rent with option to buy. These are often beautiful proposals if you want flexibility in the real estate business.
Current trends in the purchase of pre-owned homes in Miami
The market for pre-owned or existing homes has consequently experienced growth in specific segments. On one hand, young families working remotely seek larger and more accessible spaces. On the other hand, investors prioritize properties ready for renting without waiting for construction processes.
The pandemic also drove the demand for homes with open areas, balconies, and proximity to parks. These characteristics are more common in buildings and houses that are several years old. Such preferences then create new opportunities for appreciation in pre-owned homes that better respond to those needs.
Renovation and sustainability in pre-owned homes
One of the biggest benefits of a pre-owned home is the ability to add value through strategic renovations. For example, modern kitchens, renovated bathrooms, and efficient climate control systems can significantly raise the selling or rental price.
In addition, many investors incorporate sustainability criteria. These include LED lighting, low-consumption appliances, and solar panels. These improvements reduce operational costs and increase the property’s competitiveness in a market increasingly aware of environmental impact (La Nación, 2023).
A strategic opportunity in Miami
Pre-owned homes are an excellent alternative for investing in Miami’s real estate sector. They then offer more competitive prices, immediate delivery, and the possibility of personalizing the property. This then maximizes its value. Furthermore, it is accessible for foreigners, thanks to different financing options and remote purchase processes.
Make your investment in Miami more effective with our property management. At PFS Realty, we have the experience and support to guide you through the entire process. We will also help maximize your investment’s return.
Contact us to learn about available pre-owned homes options. You can then get professional guidance on the purchasing and financing process. You can also find the perfect real estate opportunity for you.
References
- GBM Academy. (2025, January 9). ¿Cómo invertir para comprar una casa?
- Internal Revenue Service [IRS]. (2024, October 15). Retención de FIRPTA.
- La Nación. (2023, November 6). La nueva tendencia en las casas de Florida con un objetivo particular y novedoso.
- Martínez, E. (2025, June 24). Qué es más caro, ¿comprar obra nueva o una vivienda usada? Idealista.
- Tax Foundation. (n.d.). Impuesto sobre la propiedad.
- USA Gov. (n.d.). Programas del Gobierno para comprar vivienda.